Canada House Wellness Group Inc. (CSE: CHV) shared on Monday evening its financial results for the fiscal year 2021 ending April 30, 2021, highlighting revenue of $10.6 million. This is an increase from 2020’s revenue of $5.3 million.
Breaking down the topline revenue figure, earnings from referrals lodged in $5.1 million, product revenues notched $6.3 million, while license and other revenues added $0.4 million.
Gross profit at the end of the fiscal year came in at 28.0%, down from last year’s 63.7%. Further down, total annual expenses ended at $10.6 million, leading the company to record an operating loss of $7.6 million compared to last year’s $7.9 million operating loss.
Corollary, the company posted an annual net loss of $11.4 million, mainly due to finance and transaction costs amounting to $2.7 million. Last year, the net loss came in at $9.5 million. The annual loss translates to $0.02 per share.
The company’s cash position ended at $1.84 million from a starting balance of $1.77 million last year. Current assets at year’s end carry a balance of $9.9 million while current liabilities came in at $12.1 million.
Subsequent to the fiscal year, the cannabis firm announced a definitive share exchange agreement to acquire Montréal Cannabis Medical Inc. The company said that the transaction will constitute a reverse takeover as its shareholders will only account for approximately 20% of the combined company post-closing. Should this transaction push through, the merger will operate under Montréal Cannabis Medical and will be trading on CSE on a related ticker symbol.
Canada House Wellness last traded at $0.035 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
